Recently, Germany’s newspaper, Frankfurter Allegment Zeitung mentioned that both Amazon and Apple have been under investigation launched by the antitrust authority of Germany. The reason behind the investigation being, the possibility of anticompetitive behaviour that has been shown by both the companies.
After the United States, Germany is the biggest market of Amazon, with its third-party dealers comprising as much as sixty-five percent of its sales from the time period of March to May 2020.
The Federal Cartel Office in Germany has been investigating Amazon’s policy where it bans some of the third-party dealers on its website and sees if it complies with the laws in Germany.
However, Amazon has maintained that it always does investment so that its store is protected from any illegitimate goods. It further added that it has been in cooperation with the authorities in Germany.
While the Federal Cartel Office wasn’t available to comment about the ongoing situation, Apple has said that it is willing to share its facts with the competition authority in Germany. Apple highlighted that it has been following the laws of Germany.
Andreas Mundt, the Cartel Office President, said that while the agreements can offer protection against the piracy of products, but, banning third-party dealers should not result in eliminating competition and it should follow the “principle of proportionality.” He
further added that the cooperation of Apple phone maker with Amazon where the only dealership of Apple is offered in Amazon’s platform can be taken as a significant example of this scenario.
In August this year, an investigation was launched by the competition watchdog of Germany to see as to how Amazon plays a role in the setting of price in a market place. The recent inquiry about the treatment Amazon has with its third-party traders has come into consideration after that.